Ilbank-2018-Faaliyet-Raporu-Eng.Pdf
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The Finance Bank should be established for the public services of the municipalities in the construction and installation of the cities. ILLER BANK2018 Contents SECTION ONE SECTION TWO SECTION THREE SECTION FOUR Presentation Bank’s Annual Activities Management and Corporate Financial Information 7 Agenda of the Ordinary General 22 2018 Investment and Financing Program Governance Practices and Risk Management Assembly Meeting 23 Works carried out with 100% Credits Financed by Bank Equity. 8 Corporate Profile 24 Bank’s 2018 Annual Activities 54 Board of Directors 69 Audit Board Report 11 Message From the Minister of 26 Project to Support the Infrastructure of Municipalities (BELDES) 56 Audit Committee 70 Audit Committee’s Assessment Of The Operation Of The Environment and Urbanization 26 Water and Sewer Systems Infrastructure Project (SUKAP) 57 Information On Audit Committee Internal Control, Internal Audit, And Risk Management 13 Message from the Chairman 27 Works Being Conducted With Appropriations Made From the Bank’s Profits 58 Information on General Manager Systems and Its Statement Concerning Activities in Year 2018 15 Message from the General Manager 30 Ministry of Environment and Urbanization Ministry with 60 Information On Internal Systems Unit Directors 74 Independent Audit Report 16 Our Corporate Message Works made under the Protocols 61 Organizational Chart Of Iller Bank 78 Iller Bank Non-Consolidated Financial Report for the Year 18 Summary Financial Results 32 Resource Development Activities and Urban Transformation Projects 63 Summary Board of Directors Report Ended on 31 December 2018 20 Capital and Partnership Structure 34 Profile of Credits Provided out of the Equity of Iller Bank 66 Compliance Opinion On The Annual Report 184 As of 31 December, 2018; Cash and Banks 36 Relations with International Financial Institutions 68 Human Resources Practices 190 Risk Management Policies Implemented Per Risk Type 40 Categorical Breakdown of Works Completed in 2019 68 Transactions The Bank Enters Into With Members 192 Information on Ratings 42 Statutory Shares Transferred to Local Governments Of Its Own Risk Group 193 Summary Financial Information For The Period 2014-2018 44 Debts Subjected to Reconciliation 68 Activities For Which Support Services Are Outsourced 194 Information On Works Completed By The Bank in 2018 45 Debts not Subjected to Reconciliation 224 Contact Information 46 Subsidiaries 46 Niğbaş Niğde Concrete Industry and Trade Inc. (NİĞBAŞ) 46 Emlak Konut Gayrimenkul Yatırım Ortaklıgı Inc. (Emlak Konut REIT) 48 Other Activities Carried Out By Ilbank 52 Research-Development Activities for New Services and Operations 6 7 ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018 Agenda of the Ordinary General Assembly Meeting Date of General Assembly Meeting Thursday, June 27, 2019 Time: 14:00 Venue JW Marriott Hotel Kızılırmak District, Muhsin Yazıcıoğlu Street, No:1 Söğütözü Çankaya/ANKARA Agenda of the General Assembly Meeting 1. Opening & moment of silence, 2. Formation of the General Assembly Council and the authorization of the Council Chair to sign the Ordinary General Assembly Meeting minutes, 3. Reading, deliberating and approving the Board of Directors’ Report and the Statutory Auditors’ Report, 4. Reading, reviewing, deliberating and approving the Balance Sheet and Profit/Loss accounts having undergone independent audits, for year 2018, 5. Individual releases of each of the company’s directors and statutory auditors 6. Determining the remuneration to be paid to the members of the Board of Directors and Statutory Auditors 7. Authorizing the Board of Directors members as per Articles 395 and 396 of the Turkish Commercial Code 8. Deciding on the cancellation of uncollected Bank receivables as required by Article 6 of the Bank Law, 9. Submission of the Amendment Text of Iller Bank Articles of Association approved by the Banking Regulation and Supervision Agency and the Ministry of Commerce to the approval of the General Assembly, 10. Election of the members of the Board of Directors on behalf of Special Provincial Administrations and Municipalities in accordance with Article 7 of the Bank Law, 11. Authorization of the Bank’s Board of Directors to be appointed to the next general meeting and signing of the contract for the Independent Audit Institution that will carry out Independent Audit of the Bank for 2019 and the following periods in accordance with the related regulation of the Banking Regulation and Supervision Agency, 9. Petitions and Suggestions 10. Closing 8 9 ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018 Corporate Profile Corporate Profile On 11 June 1933 during the presidency of Mustafa Kemal Atatürk, a financial institution called “Municipalities Bank” (Belediyeler Bankası) Article 3 of the Law no. 6107 was incorporated under Law no. 2301 with TRL 15 million capital in order governing Iller Bank sets forth that; to foster municipal prosperity and of providing credit support to such administrations as lacked financial resources and means. In order to achieve these summarized objectives, Iller Bank may; One of the Republic’s oldest established institutions, being founded in 1933 as the Municipalities Bank, Iller Bank is a Extend any and all types of short-, medi- incur any debts or enter into any conditional proud and unique institution in the world’s history of development banking. um-, and long-term cash and non-cash lo- obligation in doing so, As constitutionally In recognition of the successful services that quickly resulted from the technical and financial support given to munici- ans to its shareholders; and statutorily prescribed organizations, palities, “İller Bankası” (“Provinces Bank”) was established on 13 June 1945 under Law no. 4759. As the successor of local governments are the cradle of democ- Conduct, or arrange for the conduct of, re- the Municipalities Bank, the bank’s name was a reflection both of its expanded duties, authorities, and responsibilities search, project development and consul- racy and have an important place in, and and of its new legal status. tancy services in its fields of activity, and contribution to, the inculcation of democra- Under the Law no. 6107 published in issue 27840 of the Official Gazette on 8 February 2011, Iller Bank was officially provide technical assistance in the same, tic ideals and principles in society. transformed into a joint-stock company (İller Bankası AŞ) as of the same date. Lead the way in the formation of companies Iller Bank is a unique institution, which has as a bank, and transfer control of them, Act no exact analogues anywhere else. Having as an insurance agent, a special place in the annals of development Open branches and representative offices banking by virtue of its distinctive structure, in Turkey and abroad, provided that ne- Iller Bank has been providing local gover- cessary approvals are obtained, Cooperate nments with financial support as well as with domestic and/or foreign financial insti- transforming that support into investment tutions, become a member of national and ever since the day it was founded. international organizations of which they The objectives of Iller Bank are; Iller Bank is a unique institution, which has are members, It can obtain resources from no exact analogues anywhere else. Having To meet the financing needs of special domestic and international financial institu- a special place in the annals of development provincial authorities, municipalities, tions, money and capital markets, and any banking by virtue of its distinctive structure, and their affiliated organizations, and kinds of funds. Iller Bank has been providing local gover- of local administrative associations of Obtain resources from domestic and inter- nments with financial support as well as which only these may be members, national financial institutions, money and transforming that support into investment To develop projects concerning local- capital markets, and any and all funds, ever since the day it was founded. ly-provided common services for the Engage in any and all kinds of development Iller Bank never ceases its efforts to execute people dwelling within the boundaries and investment banking transactions that its duties, responsibilities, and powers be- of such administrations, will help it achieve its objectives; fore local governments, with an organiza- To provide such administrations with Develop projects and construct special tion based on 17 Departments as well as consultancy services and assistance projects and urban infrastructure projects Legal Counsel, R&D Board, Board of Direc- on urban projects of a technical natu- demanded by the Ministry, or arrange for tors, Audit Committee Divisions, Secretari- re and in the conduct of infrastructure the development and construction there at, Media and Public Relations Division, and and superstructure works, of, Execute, or arrange for the execution of, Recreation Facilities and Nursery Division at To perform any and all functions re- profit-making real estate investment proje- the Headquarters, and 18 Regional Directo- lated to developmentand investment cts and implementations in order to obtain rates in the provinces, employing a total of banking. funds for the Bank, provided that it shall not 2533 personnel. 10 11 ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018 Message From the Minister of Environment and Urbanization “As Iller Bank; Throughout Turkey in 2018 a total of TRL 9 billion 906 million sources have quoted our local management,